UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1995
Commission file Number 2-98176NY
Instructivision Inc.
(Exact name of registrant as specified in its charter)
New Jersey 22-2386359
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 Regent Street, Livingston, NJ 07039
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(201) 992-9081
Indicate by check mark whether the registrant(1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
As of June 30, 1995 there were 3,350,000 shares of Common Stock,
par value less than $.001 per share, outstanding.
<PAGE>
PART I. - FINANCIAL INFORMATION
Note: The following unaudited financial statements have been prepared
in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q
and Rule 10-01 of Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion
of management, all adjustments necessary for a fair presentation have
been included. Operating results for the nine months ended June 30, 1995
are not necessarily indicative of the results that may be expected for
the year ended September 30, 1995. For further information refer
to the financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended September 30,
1994.
<PAGE>
<TABLE>
INSTRUCTIVISION, INC.
BALANCE SHEETS
ASSETS
June 30, 1995 September 30, 1994
_____________ __________________
(unaudited)
<CAPTION>
<S> <C> <C>
Current Assets
Cash $ 1,293 $ 19,999
Accounts receivable- unaffiliated 198,573 218,312
Accounts receivable - affiliated 44,123 120,580
Inventory 379,480 390,537
Prepaid expenses 8,217 7,744
Deferred income taxes 30,000 51,000
___________ ___________
Total current assets 661,686 808,172
___________ ___________
Property and equipment at cost, less
accumulated depreciation 413,287 277,084
Other assets
Capitalized software - net of
amortization 115,177 110,861
Deposits 13,125 13,125
Deferred income taxes 89,000 76,000
___________ ___________
Total other assets 217,302 199,986
___________ ___________
Total assets $ 1,292,275 $ 1,285,242
___________ ___________
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS EQUITY
<S> <C> <C>
Current Liabilities
Accounts payable $ 55,820 $ 115,574
Accrued expenses 41,934 80,658
Notes payable - current portion 36,423 10,000
Notes payable - shareholder 58,750 14,500
Deferred income 0 27,000
___________ ____________
Total current liabilities 192,927 247,732
Notes payable, less current portion 72,893 3,333
___________ ____________
Total liabilities 265,820 251,065
___________ ____________
Commitments and Contingencies
Stockholders' equity
Common Stock, $.001 par value, authorized
10,000,000 shares; issued and
outstanding 3,350,000 shares 3,350 3,350
Additional paid-in capital 1,425,218 1,425,218
Accumulated deficit (402,113) (394,391)
_____________ _____________
Total stockholders' equity 1,026,455 1,034,177
_____________ _____________
Total liabilities and
stockholders' equity $ 1,292,275 $ 1,285,242
_____________ _____________
<FN>
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
<CAPTION>
June 30, 1995 June 30, 1994
_____________ _____________
<S> <C> <C>
Net Sales
Products $ 310,722 $ 346,073
Services - unaffiliated 435,687 411,016
Services - affiliated 102,903 165,888
____________ ___________
Total revenues 849,312 922,977
Costs and expenses
Cost of Sales
Products 177,051 130,302
Services - unaffiliated 254,167 313,864
Services - affiliated 60,112 2,000
____________ ___________
Total cost of sales 491,330 446,166
____________ ___________
General and administrative
expenses 351,210 357,757
Interest Expense 6,495 1,883
____________ ___________
Total costs and expenses 849,035 805,806
____________ ___________
Income before income taxes 277 117,171
Provision for income taxes 8,000 47,000
____________ ___________
Net income (loss) (7,723) 70,171
____________ ___________
Earnings (Loss) per share less than
$ (.01) $ .02
____________ ___________
</TABLE>
[FN]
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
INSTRUCTIVISION INC.
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
<CAPTION>
June 30, 1995 June 30, 1994
______________ ______________
<S> <C> <C>
Revenues
Net Sales
Products $ 80,068 $ 136,616
Services - unaffiliated 180,966 120,108
Services - unaffiliated 11,835 48,701
____________ ____________
Total revenues 272,869 305,425
Costs and expenses
Cost of sales
Products 63,813 47,111
Services - unaffiliated 106,790 116,507
Services - affiliated 7,953 2,000
____________ ____________
Total cost of sales 178,556 165,618
General & administrative expenses 109,453 112,088
Interest expense 4,737 718
____________ ____________
Total costs and expenses 292,746 278,424
Income before income taxes ( 19,877) 27,001
Provisions for income taxes (5,000) (11,000)
____________ ___________
Net income $ ( 14,877) $ 16,001
____________ ___________
less than
Earnings per share $(.01) $ .01
____________ ___________
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
INSTRUCTIVISION INC.
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 1995
AND THE YEAR ENDED SEPTEMBER 30, 1994
<CAPTION>
June 30, September 30,
1995 1994
____________ _____________
<S> <C> <C>
Operating Activities:
Net income (loss) from operations $ ( 7,723) $ 271,285
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 79,115 76,070
Amortization of capitalized software 24,759 28,225
Deferred income taxes 8,000 61,000
Cumulative effect of change in accounting 0 (188,000)
Changes in operating assets and liabilities
In(decrease) in accounts receivable
- unaffiliated 19,739 43,733
- affiliated 76,457 (55,337)
De(increase) in inventory and prepaid expenses 10,584 (75,380)
De(increase) in accounts payable and accrued
expenses (98,477) 43,227
(De)increase in deferred income (27,000) 27,000
___________ ___________
Net cash provided by operating activities 85,454 231,823
Investing activities
Additions to capitalized software (29,075) (60,126)
Purchases of property, plant & equipment (215,318) (151,143)
___________ ___________
Net cash utilized in investing activities (244,393) (211,269)
___________ ___________
Financing activities
Proceeds from promissory note 111,374 0
Proceeds from shareholder advances 46,600 0
Principal payments on credit lines, notes
payable and capital lease obligations (17,741) (18,382)
___________ ___________
Net cash (utilized) provided by financing
activities 140,233 (18,382)
___________ ___________
(De)increase in cash (18,706) 2,172
Cash at beginning of year 19,999 17,827
___________ ___________
Cash at end of year $ 1,293 $ 19,999
___________ ___________
</TABLE>
[CAPTION]
Supplemental disclosure of cash flow information
<TABLE>
June 30, 1995 September 30, 1994
_____________ __________________
<S> <C> <C>
Cash paid uring the year for
Interest $ 5,120 $ 2,921
Income taxes 0 25
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
INSTRUCTIVISION INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
June 30, 1995
(unaudited)
Note 1. Summary of Significant Accounting Policies
The financial statements included herein are unaudited. However,
such information reflects all adjustments consisting of normal
recurring adjustments which are, in the opinion of management,
necessary for a fair presentation of the statements for the interim
period.
The results of operations for the nine months ended June 30, 1995
are not necessarily indicative of the results to be expected for the
full year.
Note 2. Earnings Per Share
Earnings per share is based on the weighted average number of
common shares outstanding. The weighted average number of common
shares was 3,350,000 for the period ended June 30, 1995.
<PAGE>
INSTRUCTIVISION INC.
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
June 30, 1995
1. Material Changes in Financial Condition:
The Company's working capital ratio as of June 30, 1995 is 3.5 : 1
as compared to 3.3 : 1 as of September 30, 1994. A decrease in revenue
of $32,556 has been recorded for the quarter ended June 30, 1995
compared to the same quarter in the previous year, due to a decrease
in educational funding in many schools and increase in competitive
products on the educational market.
The Company's working capital decreased by $18,000 in the
first nine months of 1995. The decrease is primarily due to the decrease
in accounts receivable and the Company's expansion of its video
production facilities. The Company invested approximately $350,000 in
new technology, replacement of obsolete video production equipment,
and the addition of a second post production video editing suite in
order to meet demands for this service and stimulate long term revenue
growth.
The additional funds required by the expansion were in part
financed by a promissory note in the amount of $111,374, payable
over a period of three years and collateralized by equipment of the
Company.
The Company is in the process of developing new educational books
and software specifically designed for the educational market in the
state in Florida where management intents to concentrate its sales
effort to increase market share in educational product sales outside
New Jersey.
The software and accompanying textbooks are scheduled to be ready
for distribution by October, 1995.
Management believes the Company's cash availability to be
sufficient to meet its short term and long term needs.
<PAGE>
INSTRUCTIVISION INC.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly cause this report to be signed on its
behalf by the undersigned thereunto duly authorized.
INSTRUCTIVISION INC.
Registrant
August 15,1995 Jay Comras
Date Jay Comras
President
August 15, 1995 Rosemary Comras
Date Rosemary Comras
Secretary
